Enjoy complimentary customisation on priority with our Enterprise License!
The artificial intelligence (AI) infrastructure market share is expected to increase to USD 18.82 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 18.46%.
The report extensively covers market segmentation by the following:
The artificial intelligence (AI) infrastructure market report offers information on several market vendors, including Alphabet Inc., Amazon.com Inc., Arm Ltd., Cadence Design Systems Inc., Cisco Systems Inc., Dell Technologies Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., NVIDIA Corp., Oracle Corp., Samsung Electronics Co. Ltd., SK Inc., Synopsys Inc., Toshiba Corp., Wave Computing Inc., Advanced Micro Devices Inc., Graphcore Ltd., Imagination Technologies Ltd., and Micron Technology Inc. among others.
This market research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches.
Download the Free Report Sample to Unlock the Artificial Intelligence (AI) Infrastructure Market Size for the Forecast Period and Other Important Statistics
The rise in investments and R&D in AI start-ups is notably driving the market growth, although factors such as privacy issues associated with AI deployment may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the AI infrastructure industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Artificial Intelligence (AI) Infrastructure Market Driver
The rise in investments and R&D in AI start-ups is one of the key drivers supporting market growth. For instance, in October 2021, Microsoft launched a new program Microsoft AI Innovate, for nurturing and scaling start-ups that are leveraging AI. The program is launched to empower AI start-ups in India in which both B2B and B2C start-ups from various industries, including financial services, healthcare, education, agriculture, space, manufacturing and logistics, retail, and e-commerce, can participate in the quarterly cohorts of this program. Enterprises and governments are investing in the development of new technologies such as AI to stay ahead of the competition. Major vendors are supporting new start-ups and investing in R and D for the growth of AI technology. Thus, the investment in AI start-ups will propel the growth of AI infrastructure, which will drive market growth during the forecast period.
Key Artificial Intelligence (AI) Infrastructure Market Trend
Increased availability of cloud-based applications is one of the key market trends fueling market growth. To adopt AI technologies in an on-premises data centre, companies require enough computers and data storage capabilities to process the data faster. Moreover, companies looking at establishing their own in-house products have realized that this can be an expensive proposition. Therefore, cloud-based software and platforms help companies in overcoming the barriers involved in AI adoption. The early adopters of AI have also revealed that to acquire AI capabilities, the easiest path is integrating enterprise software with AI. This is primarily cloud-based and accessed through either a public or private cloud. Furthermore, the implementation of cloud-based AI services is a more feasible and cost-effective option for most companies, especially start-ups and SMEs. Thus, the increased availability of cloud-based solutions will drive the growth of AI infrastructure during the forecast period.
Key Artificial Intelligence (AI) Infrastructure Market Challenge
Privacy issues associated with AI deployment is one of the factors hindering market growth. By using advanced data mining techniques, data is gathered on several parameters such as the customer's buying habits, customers' online behaviour, and payment information. For instance, e-commerce giants, such as Amazon, use ML in a combination of collaborative filtering and next-in-sequence models to make predictions on the customer buying behaviour and recommend products to an individual based on their previous purchases. Amazon is privy to a huge database of consumer purchase behaviour to optimize its predictions. One of the huge concerns with the development of AI is the probability that attackers will weaponize AI and use it to expand and boost their cyberattacks. Such threats are expected to negatively impact the growth of the market during the forecast period.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as pricing and marketing to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
For more insights on the market share of various regions Request a FREE sample now!
49% of the market's growth will originate from North America during the forecast period. The US is the key market for artificial intelligence (AI) infrastructure in North America. Market growth in this region will be faster than the growth of the market in other regions.
The early adoption of AI and increasing investments in technology will facilitate market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The COVID-19 pandemic-induced lockdowns had a devastating effect on the regional economy, as well as on large enterprises and SMEs, in 2020 and early 2021. However, the implementation of vaccination drives in North American countries has led to a decline in the number of COVID-19 cases and the resumption of business to normalcy, which is expected to significantly drive the demand for AI infrastructure during the forecast
To gain further insights on the market contribution of various segments Request for a FREE sample
The market share growth by the processor segment will be significant during the forecast period. Processors are mainly used in consumer electronics. However, their applications have extended to military, defence, and telecommunications, as they can withstand extreme temperatures. With the increasing number of firms adopting the AI infrastructure, the demand for processors to support this architecture will also increase. Hence, such increasing demand will lead to positive growth of the segment during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on the post-COVID-19 impact on each segment.
Technavio categorizes the global artificial intelligence (AI) infrastructure market as a part of the global technology hardware, storage, and peripherals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
Artificial Intelligence (AI) Infrastructure Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.46% |
Market growth 2022-2026 |
$ 18.82 billion |
Market structure |
Fragmented |
YoY growth (%) |
17.56 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 49% |
Key consumer countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Arm Ltd., Cadence Design Systems Inc., Cisco Systems Inc., Dell Technologies Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., NVIDIA Corp., Oracle Corp., Samsung Electronics Co. Ltd., SK Inc., Synopsys Inc., Toshiba Corp., Wave Computing Inc., Advanced Micro Devices Inc., Graphcore Ltd., Imagination Technologies Ltd., and Micron Technology Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.